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Consider the Following Cost Curves for Two Perfectly Competitive Firms,A

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Consider the following cost curves for two perfectly competitive firms,A and B.
Consider the following cost curves for two perfectly competitive firms,A and B.    FIGURE 9- 3 -Refer to Figure 9- 3.Firms A and B are in the same industry.Choose the statement that best describes the situation facing the two firms. A) Firm A and Firm B are both earning positive economic profits; new firms will likely enter the industry. B) Firm A is suffering losses and will be shut down immediately; Firm B will be shut down if the price falls any further. C) Firm A is making losses but remains producing as long as price falls no further; Firm B is producing at lower cost and is earning economic profits. D) Firm A and Firm B are both suffering economic losses and will soon exit the industry. FIGURE 9- 3
-Refer to Figure 9- 3.Firms A and B are in the same industry.Choose the statement that best describes the situation facing the two firms.


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